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Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending

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Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 20x2, through June 30, 20x3.  

July 1, 20x2                   June 30, 20x3

Raw material (note)               40,000                          10,000

Work in process                     8,000                            8,000

Finished goods                      30,000                           5,000

(note) Three units of raw material are needed to produce each unit of finished product.

If 450,000 finished units were to be manufactured during the 20x2-20x3 fiscal year by Hester Company, the units of raw material needed to be purchased would be

 

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Oct 14, 2020

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